2013-02-08 19:43:48 -
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Toronto, Ontario CANADA, February 08, 2013 /FSC/ - Zara Resources Inc. (ZRI - CNSX),is pleased to announce that it has completed its acquisition of the Pigeon River property from Pele Mountain Resources Inc. ("Pele").
The consideration for 100% of the property was $700,000 payable by the issuance of: (i) 2,250,000 common shares of Zara at a deemed issue price of $0.10 per share; and (ii) 4,750,000 non-voting convertible 5% Series B preferred shares of Zara at a deemed issue price of $0.10 per preferred share. The preferred shares annual yield will be payable in common shares at the prevailing market price, and are convertible at
the discretion of Zara into common shares at the market price at the time of conversion.. The property is also subject to a 2% net smelter royalty, of which 0.5% is granted to Pele and 1.5% is granted to 2212150 Ontario Inc operating as Vanex Exploration.
The Pigeon River property is located about 80 kilometers to the west of Thunder Bay in the Pigeon River area of Northwest Ontario, and covers an unexplored magnetic target with potential to host nickel, copper and platinum group elements mineralization. Pigeon River lies in the Proterozoic Superior Mid Continent Rift, a geological setting with proven potential to host mafic/ultramafic systems.
About Zara Resources
Zara is a Toronto based mineral company developing its Pigeon River and Riverbank nickel-copper projects, in Ontario, Canada, as well as the acquisition and development of other Canadian natural resource properties.
For more information please see www.ZaraResourcesInc.com or contact Danny Wettreich at (647) 931 9775 or firstname.lastname@example.org
Forward-Looking Information: This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business and trading in the common stock of Zara Resources Inc. The forward-looking information is based on certain key expectations and assumptions made by the company's management. Although the company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the company can give no assurance that they will prove to be correct. These forward-looking statements are made as of the date of this press release and the company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
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